When to file CH7?

[hchhon]

What is the name of your state? MASS

Hi. When should I be stopping making a credit card payment before I file for CH7?
Thanks

 

[Ladynred]

As soon as you KNOW you're going to file, but at LEAST 3 months.

 

[dave7250]

Why would you need to stop paying? To avoid creditor harrassment, why not just stop using the cards for 3 months and then just simply file? I haven't seen anywhere where it says to stop paying 3 months before filing. I have heard it from several sources but don't understand the reasoning behind it.

 

[kwalla]

That is a great question. I was current when I filed. Honestly, I finally just sat down and ran all the numbers and my eyes fell out of my head.
Although it is considered wasted money if you are planning on filing, it does seem to make it easier as there are no creditor calls. If I would have known that I was going to do it, I probably would have not paid either.
I would be curious also to see what the reasoning behind that is.
My assumption would be it creates the pattern of financial stress that justifies the filing.

 

[Ladynred]

You don't NEED a 'pattern of financial stress' and you don't NEED to 'justify' filing. Quite simply, if your debt is more than you can handle, then its too much and you can file for bankruptcy if you want to !

True, you don't have to be behind in your payments, but if you've absolutely made the decision to file, why WASTE the money on debts you're going to file on anyway ??? Some people use the money they DON'T pay creditors to afford a lawyer.

Besides, there's that little stickler called 'preferential payments'. The Trustee will ask if you've paid ANY creditor $600 or more in the previous 90 days - if you have, then the Trustee will get that money back from whoever you paid - no matter who it is.

Creditors aren't going to sue before you're 6 months past due, and some NEVER do. All you'd have to put up with are some rotten phone calls, and those are relatively easy to ignore.

 

[hchhon]

"The Trustee will ask if you've paid ANY creditor $600 or more in the previous 90 days - if you have, then the Trustee will get that money back from whoever you paid - no matter who it is. "

I am paying over $500 per month on a car payment and $700 per for rent. Will the Trustee get these money back? Thanks for your hlep!